The standard labor cost in the production of a pair of Titan Brand running shoes is 0.50 hours at $16 per hour. During the month of July, 27,500 pairs were produced. Actual labor costs were $154,000 for 9,600 hours. Compute the labor rate variance and labor efficiency variance for the month of July.

The standard labor cost in the production of a pair of Titan Brand running shoes is 0.50 hours at $16 per hour. During the month of July, 27,500 pairs were produced. Actual labor costs were $154,000 for 9,600 hours. Compute the labor rate variance and labor efficiency variance for the month of July.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

See similar textbooks

Similar questions

Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
The standard cost of labor for the David Company's product is 2 hours of labor for each unit of product at a cost of $12 per hour. During December, 110,200 hours of labor were incurred to produce 58,000 units of product. The actual labor rate was $12.50 per hour. Compute the Labor Rate Variance and the Labor Efficiency (or Quantity) Variance
Yang’s standard labor cost of producing one unit of Product One is 1.7 hours at a rate of $11.1 per hour. During September, 1,558 hours were incurred at a cost of $12.7 per hour to produce 1,299 units of Product One. what is Yang’s direct labor efficiency variance
The standard cost of Product DD is 4 hours of labor at a rate of $12.00 per hour. During the month 40,600 hours of labor are incurred at a cost of $12.15 per hour. The company produced 10,000 units of product DD. A. Calculate the Direct Labor rate varianceB. Calculate the Direct Labor usage varianceC. Calculate the Total Direct labor cost variance
Assume that the standard cost to make one finished unit includes 2 hours of direct labor at $8 per hour. During April, 22,000 direct labor-hours were worked, 10,500 units of product were manufactured, and total direct labor cost was $160,000. What is the labor rate variance for April?
VR Corporation makes a product whose direct labor standard are 1.3 hours per unit and $14 per hour. In April, the company produced 5,400 units using 7,440 direct labor hours. The actual direct labor cost was $97,550. The labor rate variance for April is _.
Chang Company uses a standard costing system. In August, 7,960 actual labor hours were worked at a rate of $17.55 per hour. The standard number of hours is 6,350 and the standard wage rate is $15.45 per hour. Determine the Labor Rate and Variance Labor Efficiency Variance.
MonaLisa Industries' standard wage rate is $13.40 per direct labor-hour (DLH), and, according to the standards, each unit of output requires 5.2 DLHs. In June, 3,200 units were produced, the actual wage rate was $13.00 per DLH, and the actual hours worked were 17,000 DLHs. What would the Labor Efficiency Variance for June be recorded as?